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T2023-S$ Temasek Bond

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This is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. No offering is intended to be registered in the United States, and no offering is intended to be conducted in the United States. The bonds may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons. Not suitable for EU retail. No PRIIP KID available.

Bond Summary

Issuer

: Temasek Financial (IV) Private Limited

Guarantor

: Temasek Holdings (Private) Limited

Coupon Rate

: Fixed rate of 2.70% per year, payable every six months

Tenor

: 5 years

Issue Ratings

: Aaa by Moody’s and AAA by S&P 

Guarantor Ratings

: Aaa by Moody’s and AAA by S&P 

Maturity Date

: Wednesday 25 October 2023, redeemed at 100% of principal amount,
   unless previously redeemed and cancelled, or purchased and cancelled,
   as provided in the terms and conditions of the bond

Offer Size

: S$500 million

Placement

: S$200 million to institutional, accredited and other specified investors

Public Offer

: S$300 million to retail investors in Singapore

Issue Price

: S$1 per S$1 (being 100% of the principal amount)

Security Name

: TEMASEK S$500M 2.7% B 231025

SGX Stock Code

: TEKB

News On Chart
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    1 day
Source: ShareInvestor
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Please note the prices shown in the above chart are indicative of the latest sale price of the T2023-S$ Temasek Bond delayed by approximately 2 minutes.

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  • Please note that the amount here does not include transaction fees that would be incurred for buying.
  • Please note that you will not be entitled to receive the coupon on .
  • Please note that the amount here does not include transaction fees that would be incurred for selling.
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  • Coupon payment (S$)
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  • Please note that the amount here does not include transaction fees that would be incurred for buying.
  • Please note that you will not be entitled to receive the coupon on .
  • Please note that the amount here does not include transaction fees that would be incurred for selling.
  • Coupon payment date
  • Coupon payment (S$)
Verification:
Issue Date Coupon Rate Coupon payment frequency Maturity Date
25 October 2018 2.70% per annum Semi-annual 25 October 2023

Glossary

  • Coupon Payment Date being the expected date the coupon payment is remitted to the bondholder’s respective bank account
  • Business Day being a day (other than a Saturday or a Sunday or public holiday) on which banks and foreign exchange markets are open for business in Singapore
  • Record Date of the bond being the fifth (5th) business day before the coupon payment date
  • Transaction Date being the day you purchase or sell the bond
  • Settlement Date of the bond being the second (2nd) business day after Transaction Date
  • Closing Price of the bond of the selected date is as of 1706hrs
  • Purchase Price is the indicative bid price on the Singapore Exchange delayed by approximately 2 minutes. The actual price you transact at may vary.
  • Sell Price is the indicative ask price on the Singapore Exchange delayed by approximately 2 minutes. The actual price you transact at may vary.

Bond Calculator Disclaimer

Please note the calculator takes into account the following assumptions of the T2023-S$ Temasek Bond (“bond”):  

  • The bond calculator is strictly for the T2023-S$ Temasek Bond listed on the Singapore Exchange (SGX:TEKB)
  • Your actual investment returns may differ from the computed values as ‘dirty’ prices (inclusive of accrued interest) used for computation do not take into consideration third party transaction fees and are only to 4 decimal places
  • Quoted prices of dates earlier than today are Closing Prices of the selected date. Otherwise, quoted prices are indicative of the bid or ask prices of the bond delayed by approximately 2 minutes
  • Quoted prices are ‘dirty’ prices on the Singapore Exchange
  • The bond will cease to trade after the last Record Date (18 October 2023)
  • The Coupon Payment Dates, Settlement Dates and Record Dates are subject to the Ministry of Manpower’s declaration of public holidays in Singapore. These dates may vary after 2020

The calculator is for your convenience only and you have chosen to use it and rely on any results at your own risk. The results produced are based on third party information, such information may not be available in a timely manner and may be inaccurate. We do not guarantee the timeliness, accuracy or completeness of the third party information. All intellectual property rights in respect of such information and the calculator remain vested in their respective owners and you have no right, title or interest therein. You must not reproduce, distribute, retransmit or disseminate any such information. We will not under any circumstances accept responsibility or liability for any losses that may arise from a decision that you may make as a result of using the calculator. We reserve the right to make additions, deletions or modifications to the calculator at any time without prior notice. You may wish to consult your own investment, business, financial, legal, tax or other professional advisers prior to using the results of the calculator, or if you have any questions.  

This Frequently Asked Questions page is to be read together with the Offering Circular dated 3 August 2018, Pricing
Supplement dated 16 October 2018 and the Product Highlights Sheet dated 16 October 2018.

Please note that the offer of the T2023-S$ Temasek Bond has closed as of 23 October 2018. The information on this page, the Offering Circular, Pricing Supplement and Product Highlights Sheet are provided strictly for information only, and should be read as of their respective dates, unless otherwise specified or determined by the context.

Electronic copies of the Offering Circular, Pricing Supplement and Product Highlights Sheet are available here and at the SGX-ST website under the “Prospectus / Circulars / Offer Documents” section under the “Company Information” tab.

All dates and times are Singapore dates in times. 

More FAQs on Temasek, its bond programmes and bond issuances can be found here


ABOUT THE T2023-S$ TEMASEK BOND
 

What is the T2023-S$ Temasek Bond?

Coupon : 2.70% per year (fixed coupon)
Tenor : 5 years
Issue : Temasek Financial (IV) Private Limited, 
a wholly-owned subsidiary of Temasek
Issue Ratings : Aaa by Moody's & AAA by S&P
Maturity Date : Wednesday 25 October 2023
First Interest Payment Date : Tuesday 25 April 2019
Guarantor : Temasek Holdings (Private) Limited (Temasek)
Guarantor Ratings : Aaa by Moody's & AAA by S&P
Security Name : TEMASEK S$500M 2.7% B 231025
Counter Name : TEMASEK 2.7% 231025XB#
Singapore Exchange (SGX) Stock Code : TEKB

Temasek unconditionally and irrevocably guarantees all interest payments of the T2023-S$ Temasek Bond and full repayment of the principal amount at maturity.

Is the interest amount fixed?

Yes, the interest amount is fixed at 2.70% per year. 

Is the T2023-S$ Temasek Bond rated?

Yes, the T2023-S$ Temasek Bond is rated Aaa by Moody’s and AAA by S&P.
The ratings press releases are available here

Credit ratings are statements of opinion and are not a recommendation to buy, sell or hold the bond, and investors should perform their own evaluation as to whether the investment is appropriate. In particular, credit ratings are NOT intended for use by retail investors, and retail investors should NOT consider the credit ratings in making any investment decision.

All investors should contact their financial, investment, business, legal, tax or other professional advisers before making any decisions based on the credit ratings.

Where can I find more information on the T2023-S$ Temasek Bond?

Information is available in the Offering Circular and the Pricing Supplement. 

You may access the electronic copies here and at the SGX-ST website under the “Prospectus / Circulars / Offer Documents” section under the “Company Information” tab.

Please note that the Offering Circular and Pricing Supplement relate to the offer of the T2023-S$ Temasek Bond, which has closed as of 23 October 2018, and should be read as of their respective dates, as they have not been updated for any changes after completion of the offer. 

The video below may have relevant highlights for you.

Alternatively, you may wish to contact the Temasek Investor Relations team via
Email: bond@temasek.com.sg
Tel: +65 6828 2111 

When will the T2023-S$ Temasek Bond mature?

The T2023-S$ Temasek Bond will mature on Wednesday 25 October 2023.

100% of the principal amount, and the last interest payment, will be paid on redemption – that is, on the maturity date (Wednesday 25 October 2023).

Can the Issuer redeem the T2023-S$ Temasek Bond before the maturity date?

The T2023-S$ Temasek Bond may be redeemed prior to maturity by the Issuer for taxation reasons.

The T2023-S$ Temasek Bond may also be redeemed prior to maturity by the Issuer at a “make whole” amount, being an amount equal to the greater of:

(i) the principal amount of the bonds being redeemed; and

(ii) the amount determined by discounting the principal amount of the bonds plus all required remaining scheduled interest payments due on such bonds at the make whole call reference rate set out in the Pricing Supplement, plus a spread specified in the Pricing Supplement.

What is make whole?

The make whole call allows the Issuer to redeem the T2023-S$ Temasek Bond early before the maturity date by paying bondholders a lump sum “make whole” amount.

In the event a “make whole” event is triggered, Temasek will calculate the amount you will be paid, which is the greater of:

(i) the present value of remaining interest payments and principal amount; or

(ii) the principal amount.

ALLOCATION RESULTS AND HOLDINGS OF THE T2023-S$ TEMASEK BOND

 

How do I check my holdings of the T2023-S$ Temasek Bond?

Successful applicants in the Public Offer would have had their T2023-S$ Temasek Bond allocations credited to their respective Central Depository (CDP) accounts or Central Provident Fund (CPF) Investment accounts.

Successful purchases of the T2023-S$ Temasek Bond in the secondary market will also be credited to the purchasers’ respective CDP or CPF Investment accounts.

You may also check your holdings of the T2023-S$ Temasek Bond through CDP or the bank which your CPF Investment Account is linked to.


INTEREST PAYMENTS AND RETURNS ON THE T2023-S$ TEMASEK BOND

 

When will I receive interest payments?


The interest rate of 2.70% per year for the T2023-S$ Temasek Bond, will be paid on or around 25 April and 25 October each year. If the payment date is not a business day*, payment will be made the following business day. Bondholders shall not be entitled to any additional interest or other amount in respect of any such postponed payment.

You may refer to the table below for the indicative interest payment dates these dates are subject to changes in the public holiday schedule from now to 2023.
 

Beginning of the Coupon Period End of the Coupon Period Actual Interest Payment Dates
25 October 2018 24 April 2019 25 April 2019
25 April 2019 24 October 2019 25 October 2019
25 October 2019 24 April 2020 27 April 2020
25 April 2020 24 October 2020 26 October 2020
25 October 2020 24 April 2021 26 April 2021
25 April 2021 24 October 2021 25 October 2021
25 October 2021 24 April 2022 25 April 2022
25 April 2022 24 October 2022 25 October 2022
25 October 2022 24 April 2023 25 April 2023
25 April 2023 24 October 2023 25 October 2023


Unless the T2023-S$ Temasek Bond has been previously redeemed and cancelled, or purchased and cancelled by the Issuer, each bondholder will receive the principal amount on the maturity date (Wednesday 25 October 2023), together with the last interest payment.

Interest payments will be made to the person who is the registered holder of the T2023-S$ Temasek Bond on the fifth (5th) business day before the interest payment date (record date). For example, the record date of the first interest payment on 25 April 2019 is 17 April 2019 (19 April 2019 is a public holiday in Singapore). If you buy the T2023-S$ Temasek Bond after the record date and before the interest payment date you will not be entitled to receive the interest payment on such interest payment date.

(* “business day” means a day (other than a Saturday or a Sunday or public holiday) on which banks and foreign exchange markets are open for business in Singapore)

 

How is the half yearly interest rate calculated?

The annual interest rate of 2.70% is calculated proportionately as a half yearly rate as follows:

                                  [(Number of days in the 6-month interest period)/365 days of the year] x 2.70%

How do I calculate the returns on my investment in the T2023-S$ Temasek Bond?

1 board lot of the T2023-S$ Temasek Bond comprises S$1,000 in principal amount with the issue price being S$1 per S$1 in principal amount.

The examples below are purely illustrative, and in particular, expenses and fees (if any) have not been taken into account in order to illustrate the different measures.

You will receive half yearly interest payments, for as long as you own the T2023-S$ Temasek Bond as of the record date for the relevant interest payment.

You may use the bond calculator found here to calculate the YTM of the Temasek Bond. YTM is a widely used return measure in the bond market, which factors in coupon payments, the time to maturity, face value of the bond, and the capital gain/loss from holding the bond to maturity.

A bond's YTM is the internal rate of return required for the present value of all the future cash flows of the bond (face value and coupon payments) to equal the current bond price, as follows:

Bond’s present value/bond price =

 
 

Where C = coupon payment; n = total number of 6-month interest periods; Bond face value = S$1,000

As an illustration, if you had bought 1 board lot of the T2023S$ Temasek Bond with 2 years left to maturity at $0.950 and held it until maturity,

 

YTM = 5.37%

with your capital gain at maturity approximately equal to [(S$1.000 x 1,000) – (S$0.950 x 1,000)] = S$50 and total gain at maturity (having received 4 coupon payments) approximately equal to [($50 + ($13.46 + $13.54 + $13.46 +13.54)1] = $104.

You may also choose to look at other measures of returns for bonds, including:

 

Taking into account capital and interest gains


Assume you sold the bond 1 year later (having received 2 coupon payments):

Return = [(Capital gain/loss + Total interest payments) / Cost] x 100%  

Where:

Capital gain/loss = (Selling price – Purchase price) x No. of units

Cost = Purchase price x No. of units

Total interest payments = Half-yearly interest payment x 2 = S$13.50 x 2 = S$27
 

(a) an appreciated market price of S$1.020,  

Return = [(Capital gain + Total interest payments) / Cost] x 100% = {[(S$1.020 - S$1.000) x 1,000 + S$27] / (S$1.000 x 1,000)} x 100% = 4.70% 

 

(b) a depreciated market price of S$0.980,  

Return = [(Capital loss + Total interest payments) / Cost] x 100% = {[(S$0.980 - S$1.000) x 1,000 + S$27] / (S$1.000 x 1,000)} x 100% = 0.70%
 

Current yield: relating annual coupon of the bond to its market price

If the market price of the T2023-S$ Temasek Bond is S$0.980, its current yield would be approximately equal to [S$27 / (S$0.980 x 1,000)] x 100% = 2.76%, which is greater than the coupon rate of 2.70%.

Conversely, if the market price of the T2023-S$ Temasek Bond is S$1.020, its current yield would be approximately equal to [(S$27 / (S$1.020 x 1,000)] x 100% = 2.65%, which is less than the coupon rate of 2.70%.

Footnotes:

1 Actual coupon payments will vary depending on number of days in each coupon payment period. See “How is the half yearly interest rate calculated?” above for more information.

 

 

How much interest do I receive each period?

The interest is paid half yearly at the end of every 6 months.

If the date falls on a weekend or public holiday, the payment is made on the following business day.

The amount of interest you will receive depends on the principal amount of the T2023-S$ Temasek Bond you hold.  The principal amount is the sum that you will receive upon maturity of the T2023-S$ Temasek Bond. The principal amount will be paid to you when the T2023-S$ Temasek Bond is redeemed upon maturity, together with the last interest payment.

So long as you hold the T2023-S$ Temasek Bond as of the fifth (5th) business day before the interest payment date (record date), the interest received at the end of every 6-month interest period is calculated as follows:

                      [(Number of days in the 6-month interest period)/365 days of the year] x 2.70% x principal amount

If I invest using my Central Provident Fund (CPF) savings, where do I receive my interest payments, capital gains/principal amount?

CPF Savings refer to your investible CPF Ordinary Account savings.  

If you invest using your investible CPF Savings, interest payments, repayment of the principal amount at maturity of the T2023-S$ Temasek Bond and/or proceeds from the sale of your T2023-S$ Temasek Bond in the secondary market, including capital gains (if applicable), will be credited to your CPF Investment Account.

If I sell the T2023-S$ Temasek Bond in the secondary market, do I still continue to receive the interest payments?

You will receive the interest payments, so long as you continue to own the T2023-S$ Temasek Bond as of the record date for the relevant interest payment.

The record date, which is the fifth (5th) business day before the interest payment date, is a cut-off date where the Issuer will determine which bondholders are eligible to receive the interest payment. 

You may check the record date on SGXNET or Temasek’s website prior to each interest payment date.

Once you have sold the T2023-S$ Temasek Bond, you will no longer own the bond and hence will not receive subsequent interest payments.


TRADING THE T2023-S$ TEMASEK BOND IN THE SECONDARY MARKET

Please see the table below for key information on the T2023-S$ Temasek Bond.

You may find more trading and pricing information of the T2023-S$ Temasek Bond here.

Security Name

TEMASEK S$500M 2.7% B 231025

Counter Name TEMASEK 2.7% 231025XB#

Singapore Exchange (SGX) Stock Code

TEKB

Central Depository (CDP) Name

TEMASEKB231025

Board Lot Size

S$1,000 in principal amount

Listing Date

Friday, 26 October 2018

Central Provident Fund Investment Scheme (CPFIS) Eligibility

 

Yes

Supplementary Retirement Scheme (SRS) Eligibility

Yes

 
 
 

Can I buy or sell the T2023-S$ Temasek Bond in the secondary market?

Yes, the T2023-S$ Temasek Bond can be bought or sold in the secondary market.

The market price of the T2023-S$ Temasek Bond may be above or below its issue price, depending on market conditions at the time, such as supply and demand, general market conditions and other factors.

Can I sell the T2023-S$ Temasek Bond before the maturity date? Will I lose any money if I sell the T2023-S$ Temasek Bond before the maturity date?

You can choose to sell your T2023-S$ Temasek Bond in the secondary market and before the maturity date (Wednesday 25 October 2023, if not redeemed earlier by the Issuer).

Your investment return will depend on the prevailing market price at the time you sell, which may be above or below your purchase price of your T2023-S$ Temasek Bond.

If you have questions in relation to the T2023-S$ Temasek Bond, please contact the Investor Relations team via: 

Email:  bond@temasek.com.sg

Tel: +65 6828 2111  

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